Usiminas to issue $750 million in debt notes

Friday, 12 July 2019 00:33:01 (GMT+3)   |   Sao Paulo

Brazilian flats steelmaker Usiminas said on Friday it will issue $750 million in debt notes, as part of an agreement it reached with creditors to renegotiate existing debt.

As previously reported by SteelOrbis, Usiminas agreed to issue debt notes through its subsidiary Usiminas International for qualified institutional buyers.

Usiminas said on Friday the debt notes will have a coupon (interest) of 5.8 percent per year, and will be issued at a price of 98.5 percent the principal amount, with a yield of 6.1 percent annually.

The debt notes are due on July 18, 2026. Usiminas said it expects to launch the debt note offering on July 18 this year.

Usiminas will use the proceedings to pay BNDES, a creditor and Brazil’s local development bank, in full. It will also use the money to pay Japanese creditors in full. Those include the Japan Bank for International Cooperation (JBIC), Nippon Usiminas Co, Mizuho Bank Ltd, as well as other unnamed Japanese creditors.

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